Construction Machinery Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld

Over the next five years, the industry is expected to record short-term growth as US construction markets strengthen and Canadian manufacturers increase production. For these reasons, industry research firm IBISWorld has added a report on the Construction Machinery Manufacturing industry to its growing industry report collection.

Strengthening Canadian and US construction markets will continue to benefit the industry.

New York, NY (PRWEB) May 16, 2014

Firms in the Construction Machinery Manufacturing industry are involved in the production of a variety of machinery and equipment that are used in the construction of residential, nonresidential, highway, street and other infrastructure construction. Over the past five years, the Canadian construction market has improved, which has helped boost industry revenue following several years of decline. “Additionally, the industry generates the majority of its revenue from exports, which are predominantly focused on the United States,” according to IBISWorld Industry Analyst Jeremy Edwards. Therefore, stronger US construction activity in residential, commercial and industrial markets spurred growth in 2011 and 2012.

However, despite a recovering construction market domestically and internationally, the industry has struggled to compete with the increasing threat of foreign manufacturers. “Construction machinery manufacturers in the United States, Germany and Japan are extending their global reach, and a high Canadian dollar has precipitated increased demand for foreign products as they become relatively cheaper,” says Edwards. As a result, the industry is expected to grow at an average annual rate of 2.2% to $1.8 billion over the five years to 2014. Growth is expected to be stronger in 2014, with rising demand from the United States and domestic markets pushing industry revenue forward 2.0%.

Over the next five years, the industry is expected to record short-term growth as US construction markets strengthen and Canadian manufacturers increase production. However, competition is expected to remain fierce and is projected to cause industry revenue to contract over the five years to 2019. Local manufacturers will be forced to focus on the production of specialized equipment and machinery parts, which will remain profitable. Other manufacturers are expected to face difficult conditions and will be forced to exit the industry.

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.